Domino's Pizza (DPZ) PT Lowered to $350 at Wells Fargo

Wells Fargo analyst Zachary Fadem lowered the price target on Domino's Pizza (NASDAQ: DPZ) to $350.00 (from $400.00) while maintaining a Equal Weight rating.

The analyst comments "Q1 a win for bears; but more innovation on deck. While Q1 weakness was well telegraphed, comps decelerated -190bps q/q (w/Mar weakest despite Best Deal Ever) as peer promo ramped (PH $10 deal) & macro headwinds stepped up. While a lower '26 bar makes sense, even a +1% comp in FY26 implies ~470bps of 2-yr acceleration in Q2-Q4 (thus embedding hopes from product innovation step up). While we think P/E is appropriately cheap & DPZ taking some share, Q1 offers few reasons to shift more constructive. Top-line takes. 1) Q1 US comps of +0.9% missed St's +2.4% on intensifying macro & competitive pressures (Mar. weakest): 2) Carryout/Delivery -410bps/-190bps q/q to +2.4%/-0.3%; Assuming ~8% mix & 50% incrementality, we est 3P delivery added +2.5% to comp (ex-3P orders -1.5%); 3) Pizza category grew in Q1 (DPZ took share); We estimate PH/PZZA closures a ~60bps tailwind; 4) DPZ ran Best Deal Ever in the US for 5.5 weeks (vs. 3 LY); 5) Int'l decelerated -110bps to -0.4% driven by DPE weakness."

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